Home Equity Loan Calculator
How much of your home's equity a lender could let you borrow, and the monthly payment on the amount you take.
Result…
How it's calculated
Borrowable equity = home value × maximum combined LTV − mortgage balance Payment = A × i ÷ (1 − (1 + i)^−n), i = yearly rate ÷ 12 Combined LTV = (balance + new loan) ÷ home value
A home equity loan is a lump sum borrowed against the part of your home you own outright, repaid in fixed monthly payments. Lenders cap all the loans on the home together at a share of its value, the combined loan-to-value limit, so what you can borrow is that cap minus what you already owe.
Your numbers, step by step
About the Home Equity Loan calculator
This home equity loan calculator works out how much you could borrow against your home and what the loan would cost each month. Lenders cap all the loans secured on a home together at a share of its value, called the maximum combined loan-to-value. Enter the home's value, what you still owe on the mortgage and that limit, and it shows the borrowable equity. Then enter the amount you want, the rate and the term to see the fixed monthly payment, the total interest, the combined LTV after the loan and the equity you keep. The limit is yours to enter because it differs by lender and country, and the working is shown with your numbers. To check the payment on any amount, use the loan calculator.
How to use it
- Enter the “Home value” and your “Mortgage balance”.
- Enter the “Maximum combined LTV” the lender allows; ask the lender if you do not know it.
- Enter the “Amount you want to borrow”, or 0 to see only the most you could borrow.
- Enter the “Interest rate” and “Loan term”, then read the borrowable equity and the monthly payment.
Worked example
A home worth 500,000 with 250,000 still owed and an 80% combined limit allows 400,000 of loans in all, so you can borrow up to 150,000. Taking 50,000 at 8.5% over 15 years costs 492.37 a month, 38,626.56 in interest and 88,626.56 in all. The combined LTV rises to 60%, and 200,000 of equity is left in the home.
Updated
Questions people ask
How do I calculate how much home equity I can borrow?
Multiply the home's value by the lender's maximum combined LTV, then subtract everything you still owe against the home. What is left is the most you can borrow.
What is combined loan-to-value?
It is all the loans secured on the home, the mortgage and the new loan together, divided by the home's value. Lenders use it to limit how much of the home is borrowed against.
What is the difference between a home equity loan and a HELOC?
A home equity loan pays a lump sum repaid in fixed monthly payments. A HELOC is a credit line you draw on, usually with interest-only payments at first; the HELOC calculator covers that.
Why might a lender offer less than this shows?
Lenders also check your income, other debts, credit history and their own valuation of the home, which may be lower than your estimate.
What are the risks of a home equity loan?
The home secures the loan, so missed payments can put it at risk, and a fall in prices can leave you owing more than it is worth. Talk to the lender or a financial adviser before borrowing against your home.